Forecasts for SGD to AUD
Recent forecasts for the SGD to AUD exchange rate reveal a nuanced outlook shaped by economic recovery and geopolitical uncertainty. Following a period of depreciation against the US dollar, the Singapore dollar (SGD) managed to reclaim some ground due to Singapore's stronger-than-expected economic performance, with GDP growth of 3.2% for the third quarter. This has prompted analysts to upgrade Singapore's growth forecast for 2024 to around 3.5%. As FX analysts watch closely, the Singapore dollar's relative strength may benefit from the Monetary Authority of Singapore's hawkish stance compared to the more dovish outlook of the Federal Reserve, contributing to a potentially supportive environment for the SGD in the coming months.
Conversely, the Australian dollar (AUD) has faced headwinds, particularly following disappointing GDP figures that have stoked speculation about potential interest rate cuts by the Reserve Bank of Australia in 2025. Heavy selling pressures in October, fueled by these economic concerns and uncertainties surrounding US tariffs, have weighed down the AUD. As market observers highlight, the Australian dollar's future trajectory hinges significantly on China's demand for commodities and any fallout from potential tariffs under a new Trump presidency. Current price data shows the SGD/AUD at 1.1656, remaining 2.0% above its three-month average of 1.1427, indicating that while there’s potential for stability, broader market dynamics will continue to influence this currency pairing, particularly with upcoming trade figures soon to be released.
